How do I get a technical error fixed on TurboTax? On my end, the cost of goods section is showing 2019/2020 instead of 2020/2021. I cant move forward due to the error.

[cassidyt156]

Last year was correct, but it seems the cost of goods/ cost of purchase section never updated to the current years.

[MichelleLO]

To confirm, you are using TurboTax Self Employed Online? 

[Rocky1]

I am using Turbotax Self Employed and I am also getting 2019/2020 cost of goods instead of 2020/2021.  The 2020 slots are open for entry, but since it is not the correct year, it is not calculating correctly.

[Rocky1]

I am using TurboTax self employed online and I am also seeing 2019/2020 instead of 2020/2021.

[PatriciaV]

@Rocky1 Would you please post a token for your return so we can test the calculation issue?

This sends us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[Rocky1]

Thanks for the response.    Token number #907723

[PatriciaV]

Thanks, @Rocky1  We'll post our findings here, though it may take a day or so.

[PatriciaV]

@Rocky1 
Please confirm your beginning inventory balances for 2020 and 2021, and your ending inventory for 2021.

[Rocky1]

@PatriciaV  - the issues is that no matter what value you put in there, the entry slot says 2021 and not 2022.  so if you do enter anything under 2021 (as that is the only option), when you go back to the front page of the expenses, 2022 inventory is empty.    The application needs to get updated with the correct year.

[PatriciaV]

@Rocky1
For your 2021 return, there would be no need to enter any inventory numbers for 2022.
What I see in the return you shared are inventory purchases for 2020, but zero beginning and $3,730 ending inventory for 2021. Is that correct?

[btenderlisa]

What he is telling you is that on the screen titled: "Let's get the cost of your goods", the columns should be for 2020 (which show last year's numbers) and 2021, where you'll put in this year's numbers. The problem is the columns are titled "2019" and "2020". I spoke with a tax expert earlier who told me to put in my cost of goods from 2020 and then use "Supplies" to show my actual cost of goods. It doesn't seem correct to do that though.

[MarilynG1]

Yes, the tax law changes in 2017 allow you to claim goods purchased as Supplies.

"The TCJA allows small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting. The law expands the number of small business taxpayers eligible to use the cash method of accounting and exempts these small businesses from certain accounting rules for inventories, cost capitalization and long-term contracts. As a result, more small business taxpayers can change to cash method accounting starting after Dec. 31, 2017."

The incorrect year headings on the screen are display issues; if you do enter amounts there they will go on your 2021 return correctly. 

Click this link for more discussion on Cost of Goods Sold Entry Screen Incorrect.